Cortendo AB has raised about $26.4 million in a private placement. The investors were RA Capital Management, New Enterprise Associates, Broadfin Capital and HealthCap. Headquartered in Göteborg, Sweden and with offices in Radnor, Pennsylvania, Cortendo is a biopharmaceutical firm focused on orphan endocrine disorders.
STOCKHOLM–(BUSINESS WIRE)–Regulatory News: Cortendo AB (http://www.cortendo.com), a global biopharmaceutical company focused on orphan endocrine disorders, today announced that it closed a previously announced private placement totaling approximately $26.4 million. Including the $11 million private placement announced in October, the company has raised a total of approximately $37 million in the last five months.
The Company has closed on transactions with leading U.S. institutional specialist healthcare investors RA Capital Management, New Enterprise Associates (NEA) and Broadfin Capital. HealthCap, a leading European venture capital healthcare investor, also participated by increasing its existing investment in the company. The additional share issues were approved at an Extraordinary General Meeting on February 3.
“As we laid out our 2015 U.S. financing strategy and intention to build a global biopharmaceutical company initially focused on orphan endocrine diseases, we received strong interest and support from leading institutional investors in the U.S. as well as in Europe,” said Matthew Pauls, President and CEO of Cortendo. “This financing strengthens our ability to drive enrollment in our global Phase 3 trial for COR-003 for endogenous Cushing’s syndrome and work with potential partners to expand our orphan disease portfolio.”
Cortendo previously closed on an $11 million investment led by HealthCap, announced in October 2014, and approved by the EGM on December 1, 2014.
As a result of the most recent private placement, the share capital of Cortendo will increase from SEK 106,708,863 to SEK 159,080,722 and the total number of shares in the company will amount to 159,080,722.
About Cortendo AB
Cortendo AB is a global biopharmaceutical company incorporated in Sweden and based in the United States. The Company’s strategic focus is to be the global leader in commercializing innovative medicines for orphan endocrine disorders. Cortendo is leading the way in the field of cortisol inhibition through the investigational drug, COR-003 (levoketoconazole), currently being studied in the global Phase 3 SONICS trial for the treatment of Cushing’s syndrome. COR-003 (levoketoconazole) has received orphan designation from both the European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA). The Company’s intent is to independently commercialize its Orphan/Endocrine assets in key global markets and partner non-strategic product opportunities, such as diabetes, at relevant development stages.